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Florida Statute 605.0407 - Full Text and Legal Analysis
Florida Statute 605.0407 | Lawyer Caselaw & Research
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F.S. 605.0407 Case Law from Google Scholar Google Search for Amendments to 605.0407

The 2025 Florida Statutes

Title XXXVI
BUSINESS ORGANIZATIONS
Chapter 605
FLORIDA REVISED LIMITED LIABILITY COMPANY ACT
View Entire Chapter
605.0407 Management of limited liability company.
(1) A limited liability company is a member-managed limited liability company unless the operating agreement or articles of organization:
(a) Expressly provide that:
1. The company is or will be manager-managed;
2. The company is or will be managed by managers; or
3. Management of the company is or will be vested in managers; or
(b) Include words of similar import to those in subparagraphs (a)1.-3. except that, unless the context in which the expression is used otherwise requires, the terms “managing member” and “managing members” do not, in and of themselves, constitute words of similar import for this purpose.
(2) In a member-managed limited liability company, the management and conduct of the company are vested in the members, except as expressly provided in this chapter.
(3) In a manager-managed limited liability company, a matter relating to the activities and affairs of the company is decided exclusively by the manager, or if there is more than one manager, by the managers, except as expressly provided in this chapter.
(4) A member is not entitled to remuneration for services performed for a member-managed limited liability company, except for reasonable compensation for services rendered in winding up the activities and affairs of the company, in the absence of an agreement to the contrary.
(5) A limited liability company shall reimburse a member for an advance to the company beyond the amount of capital the member agreed to contribute.
(6) The dissolution of a limited liability company does not affect the applicability of this section and ss. 605.04071-605.04074. However, a person who wrongfully causes dissolution of the company loses the right to participate in management as a member and a manager.
History.s. 2, ch. 2013-180.

F.S. 605.0407 on Google Scholar

F.S. 605.0407 on CourtListener

Amendments to 605.0407


Annotations, Discussions, Cases:

Cases Citing Statute 605.0407

Total Results: 2  |  Sort by: Relevance  |  Newest First

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Akerman, LLP v. Sandra Cohen (Fla. 4th DCA 2022).

Published | Florida 4th District Court of Appeal

...structural authority by which a limited liability company waives its attorney-client privilege, like corporations, we conclude the company’s management structure informs the decision. In Florida, limited liability companies are either member-managed or manager-managed. § 605.0407(1), Fla....
...the limited liability company owned by all members,” and “the affirmative vote or consent of a majority-in-interest of the members is required to undertake an act, whether within or outside the ordinary course of the company’s activities and affairs.” § 605.04073(1), Fla....
...ecided” in one of three ways: “by the manager; if there is more than one manager, by the affirmative vote or consent of a majority of the managers; or if the action is taken without a meeting, by the managers’ unanimous consent in a record.” § 605.04073(2), Fla....
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Addiel Lopez v. Gadi Hus (Fla. 4th DCA 2020).

Published | Florida 4th District Court of Appeal

...The designation as member- managed or manager-managed affects which provisions of the LLC Act apply. “In a member-managed limited liability company, the management and conduct of the company are vested in the members, except as expressly provided in [the LLC Act].” § 605.0407(2), Fla....
...(2016). But, “[i]n a manager-managed limited liability company, a matter relating to the activities and affairs of the company is decided exclusively by the manager, or if there is more than one manager, by the managers, except as expressly provided in [the LLC Act].” § 605.0407(3), Fla....
...Lopez, of course, did not consent to his own removal. Lopez acknowledges that removal of a manager of a manager- managed LLC generally requires the consent of the “member or members holding more than 50 percent of the then-current percentage” interest in the LLC’s profits. § 605.04072(4), Fla. Stat. (2016). But he contends that “a statute of more specific application controls” and relies on section 605.04073, Florida Statutes (2016). In a manager- managed LLC, section 605.04073(2)(e) requires the consent of all members to amend the articles of organization. § 605.04073(2)(e), Fla. Stat....
...Hus as managers, Lopez contends his removal as a manager could only be achieved by amending the articles of organization, which was improper without his consent. 2 We disagree with Lopez’s argument and his assertion that section 605.04073(2) is the statute of more specific application. The plain language of section 605.04072(4) permits the removal of a manager of a manager-managed LLC with the consent of members owning a majority interest in the LLC’s profits....
...2017) (“[O]ur first (and often only) step in statutory construction is to ask what the Legislature actually said in the statute . . . .” (Lawson, J., concurring in part and dissenting in part) (citation omitted)). Despite the plain language of section 605.04072, Lopez is correct that section 605.04073(2)(e) requires the consent of all members to change an LLC’s operating agreement or articles of organization. But Lopez is not correct that section 605.04073 is the more specific statute. Section 605.04073(2)(e) applies, generally, to amendments to an operating agreement and articles of organization. Section 605.04072, on the other hand, specifically addresses the percentage needed to remove a manager in a manager-managed LLC....
...Rudnick, No. 14-80809- CIV, 2014 WL 4060029, at *2 (S.D. Fla. Aug. 14, 2014) (citations omitted). Here, the parties did not amend the default rule through an operating agreement, and there is no question about the legislature’s intent in enacting section 605.04072....

This Florida statute resource is curated by Graham W. Syfert, Esq., a Jacksonville, Florida personal injury and workers' compensation attorney. For legal consultation, call 904-383-7448.